VOL. XLIX.-XO. 15,149.
" . FKICK FIVE CENTS.
ri
MUCH
GAMBLING
ON ALL EXCHANGES
Hughes' Committee
Says It Is Incurable.
REPORT POINTS TO REMEDY
Would Abolish Mercantile and
Metal Exchanges.
PRICES FIXED BY CLIQUES
Evils of Manipulation and Specula
tion Can Be Cured by Exchange.
Many Changes In Law
Are Recommended.
FINDINGS AND CONCLrSIONS.
Few stock transactions for In
vestment, a substantial part vir
tually gambling, but hard to make
legal distinction.
Buying; stocks on margins as legi
timate as buying any other proper
ty on part payment.
Pyramiding should be discouraged.
Short selling Is beneficial, for It
steadies prices.
Manlpuatlon to create market for
new securities not objectionable, but
for speculative purposes Is open to
serious 'criticism. Only complete
remedy Is to abolish exchange, but
exchange can prevent worst forms.
Matched orders severely con
demned. If wrong-doing recurs, incorpora
tion of stock exchange may be de
manded. Consolidated stock exchange af
fords opportunity for speculation by
persons of small means.
Regulation of curb market Impera
tive and exchange largely responsi
ble for abuses.
Allowing advertisements of frauds
bring much discredit on Wall street.
Selling of futures In agricultural
products Indispensable.
Trading tn mining stocks on pro
duce exchange condemned.
Mercantile and metal exchanges
have Inside committees which do
not base them on actual sales, but
fix them for the profit of a small
clique.
NEW YORK, June 16. The report of
the committee appointed by Governor
Hughes to Investigate speculation In se
curities and commodities and the organ
izations used In dealings therein was
made public tonight. The New York
Stock, the Consolidated Stock, the Cotton,
the Produce, the Coffee, the Mercantile
and the Metal Exchanges and the curb
market were thoroughly investigated and
recommendations looking to improve
ment of existing conditions were made
at length by the committee. The most
drastic finding Is that affecting the
Mercantile and Metal Exchanges, as
follows: "Under present conditions, we
are of the opinion that the Mercantile
and Metal Exchanges do actual harm to
producers and consumers, and thai, their
charters should be repealed."
Concerning speculation In general, the
committee declares that It may be wholly
legitimate, pure gambling or something
partaking of the Qualities of both; that
in some form It Is a necessary Incident
of production operations: that It tends
to steady prices, and that for t"he mer
chant or manufacturer the speculator
performs a service which has the effect
of Insurance. The report says:
la law speculation becomes gambling- when
the trading- which it involves does not lead
and la not Intended 1 to lead to the actual
palnir from hand to hand of the property
ttst Is dealt In.
Tbs rule of all the exchanges forbid ram
bling as deflneJ by thle opinion: but they
make so eaer a technical delivery of the
property contracted for that the practical ef
fect of much speculation. In point of form
legitimate. Is not greatly different from that
or gambling.
The committee makes no presentment
against Bhort selling, but declares the
tendency of such selling Is to steady
prices. It Is recommended that the mini
mum margin should be 20 per cent and
strong disapproval Is expressed of branch
brokerage offices which supply liquor and
resort to other improper means to Induce
speculation. .
Healers in Stocks Classified.
Taking up the New York Stock Ex
change, the volume of transactions there
on is referred to as making it probably
the most important financial Institution
In the world. Patrons of the exchange
are divided by the committee into five
groups, namely. Investors who pay for
what they buy: manipulators of prices;
floor traders: outside operators having
capital and experience; and "inexperi
enced persons who act on interested ad
vice, tips." advertisements in newspapers
or circulars sent by mall, or 'take fly
ers' in absolute Ignorance and with blind
confidence in their luck. Almost without
exception they eventually lose." As to
the character of the transactions the
committee declares it Is unquestionable
that only a small part of them is of
Investment character: a "substantial part
may be characterized as virtually gam
bling" but continues:
Yet we are unable to see how the state
could distinguish by law between proper and
Improper transactions, since the forms and
mechanisms ujd at-e identical. Rigid et&t
ute directed against the latter would serious.
Jy Interfere with the former. But the ex
change could provide correctives.
Purchasing securities on margin is as le-
(Continued on Page a.)
HAYWOOD SMOKES
CIGARETTE; JAILED
SOCIALIST LEADER CACGHT BY
WASHINGTON LAW.
Two Companions Also Caught, but
County Attorney lief uses
to Prosecute. '
ELLENSBURG, Wash., June 16.
(Special.) William D. Haywood, the
notorious Socialist speaker and organ
izer, was the first man to be arrested
in Ellensburg under the provisions of
the new cigarette law. In company
with two worklngmen, Otis Bates and
Leo Smith. Haywood was taken into
custody this morning while in the Mint
Saloon by Deputy Sheriff German. In
Justice Court bonds were fixed at $15
apiece. Haywood paid his bond and
was released, but the other two were
held until .this afternoon, when all
three were allowed to go on order from
the County Attorney, E. K. Brown, who
refusesd to prosecute the case.
When arrested, Haywood was said to
be under the Influence of liquor and
had Just placed a cigarette between his
lips when he saw the deputy. Both
Haywood and the worklngmen dropped
the incriminating materials to the
floor, where they were found by the
officers. When seached, materials for
making cigarettes were found on their
persons. Considerable surprise was
manifested at the stand taken by- the
County Attorney. This dignitary, in
an interview this afternoon, stated he
did not believe the law constitutional,
and that he will not prosecute any
cases until a test case is made.
CALIF0RNIANS WANT TRADE
Merchants to Visit Klamath Falls to
Head Off Portland.
SACRAMENTO, Cal., June 16. (Spe
cial.) The Sacramento Jobbers' Associa
tion is planning an excursion to Klamath
Falls, Or., some time in the near future.
The purpose of the trip is to become
personally acquainted with the merchants
at Klamath Falls and in Southern Ore
gon cities, with whom the wholesalers of
this city do a great volume of business.
SJouthern Oregon is growing rapidly and
the trade In that section is beginning to
tempt the wholesalers of Portland. It is
to head off the Inroads of the Northern
ers that the local merchants plan the
trip. Few of the heads of Sacramento
wholesale firms have ever seen Klamath
Falls, although they have been doing
business with that section for years.
HOTEL DEFIES NEW LAW
Spokane Hostelry Enjoins Police
Chief From Entering Property.
SPOKANE, Wash., June 1 .(Special.)
Alarmed by the announcement that
further restrictions are to be placed upon
his liquor department, said to do a
business of more than $200 a day, "Billy"
Norman, president of the Spokane Hotel
Company, has secured a, temporary order
from Superior Judge D. H. Carey, re
straining Chief of Police Sullivan from
entering the property.
The hotel company's bar is located in
a large room to the right of the lobby
of the hotel and Is also used as a pool
and billiard parlor and is operated on
Sunday the same as on any week day.
SALAD CAUSE OF STABBING
Walter Attacks Cook Who Will Not
Mix Dressing to Suit.
TACOMA. Wash., June 16. (Special.)
A petty argument about mixing salad
dressing resulted In a stabbing affray
at the Tacoma Hotel during the dinner
hour. William Covington, an employe in
the kitchen. Is at a hospital, dangerously
wounded, while his assailant, H. W.
Chandler, a waiter, is held at the police
station. Chandler wanted Covington to
mix the .salad dressing for a particular
guest and the latter refused, whereat
Chandler attacked him with a knife.
,-I wish I had killed him," was his only
comment when arrested.
TAFT AGAIN LOSES GAME
Congressmen Defeat Executive In
Close Golf Match.
WASHINGTON, June 16. President
Taft was again defeated in a golf match
plajed on the Chevy Chase links this
afternoon. In a foursome with Clarence
Edwards, again his partner, against Sen
ator Bourne and Representative Gillett,
the President lost by a. score of 1 up.
NORDSTROM TO BE HANGED
Governor Refuses Pardon or Stay to
Tillamook Murderer.
SALEM. Or.. June 16. Adolf N. Nord
strpm will be granted no pardon or
parole by the Governor, despite attempts
made today to secure a respite, and he
must hang Friday for the murder of
John Peterson, in Tillamook County.
POWELL IS CONFIRMED
Bourne Drops Fight on Marshal at
Nome, Alaska.
OREGONIAN NEWS BUREAU. Wash
ington. June 16. The Senate this evening
confirmed the nomination of T. Cader
Powell as United States Marshal at
Nome. Alaska. There was no opposition.
Senator Bourne having withdrawn his
protests.
NEGRO SHOOTS 2;
POSSE ON TRACK
Portland Railroad Men
Felled by Porter.
BOTH VICTIMS WILL RECOVER
Countryside Around Shaniko Is
Filled With Pursuers.
HOUNDS TO TAKE UP TRAIL
Country Officer Almost Takes Vic
tim to Jail When Asked to Arrest
Assailant Burglary Attrib
uted to Fleeing Porter.
FACTS IN SHANIKO CASE.
Drunken negro porter, H. E.
Brooks, shoots B. H. Trumbull and
John S. McLaughlin. Illinois Central
officials, after being ejected from
their car and while being taken to
Jail at Shaniko.
Mr. McLaughlin points out would
be murderer to Shaniko oljncer. who
is Incredulous and threatens to ar
rest Mr. McLaughlin.
Messrs. McLaughlin and Trumbull
are brought to Portland on special
train. and examination of their
wounds show both will recover.
Brooks is seen by automobile party
returning from quest for doctor, but
capture Is not effected.
Burglary last night of farmhouse
near Shaniko attributed to Brooks.
Search by Wasco County Sheriff
and posae for would-be murderer
proves ineffective. Bloodhounds to
take trail today. .
Bernard H. Trumbull and John S. Mc
Laughlin, representatives of the Illinois
Central Railway, were shot and serious
ly wounded at Shaniko bv H. E.
Brooks, a drunken Pullman porter,
eariy yesterday morning. Both will re
cover. ' barring unexpected develop
ments. The wounds of neither were re
garded as dangerous after a thorough
examination had been made upon the
arrival of the victims in Portland yes
terday afternoon.
. Trumbull has two wounds, one in the
left leg. Just below the groin, the other
a mere flesh wound in the right leg.
McLaughlin has a mild wound in his
right leg, several inches under the
groin, and the only possible danger is
that of blood poisoning. Mr. Trumbull
believes the first ball that struck him
penetrated McLaughlin's leg after
wards, which would render the wound
dangerous. But McLaughlin is certain
he was struck first.
Arriving in Portland at 2:45 P. M.
yesterday after a run by special train
of eight hours, the wounded men were
taken at once to hospitals. Mr. Trui
bull was immediately placed on the
operating table at the Good Samaritan
(Concluded on Page lO.)
BRIDE HAD SOLE
CORNS; HE BOLTS
PHRENOLOGIST, AGED 50, DID
NOT FORESEE BUNIONS.
Married a Week, He Flees Wife
Files Complaint
In Hiding.
raught
Because his bride of a week had corns
on the bottom of her feet. Professor J. K.
Marsh, phrenologist and self-styled inti
mate of the God of Destiny, Is charged
with wife desertion, and, in the custody of
a detective. Is en route to Tacoma, Wash.
"When I saw those awful corns, I Just
couldn't stand it," declared the phrenolo
gist to Detective Hellyer, who arrested him
on a ranch five miles east of Portland,
where he was in hiding, early yesterday
morning. "My only regret is that I, who
profess to tell other people what should be
their course in matrimony, and other af
fairs of life, should contract a domestic
relation with such an unpleasant ending,"
he concluded.
And that isn't the end, either, says the
wife, who swore to a complaint for hie
arrest. "Now that he has me, he has got
to support me," she Informed the Tacoma
sleuth who took Marsh north yesterday
afternoon.
Marsh and his spouse are past 50 years
old. He met her through a matrimonial
agency. They were married six weeks
ago in Tacoma, and nothing occurred to
mar the happiness of the honeymoon for
a week, as the wife thought. Then, ac
cording to Marsh, he stood his wife's bun
ions as long as possible and bolted. For
five weeks he eluded the police, and evi
dently thought himself safe until Bur
prised by Detective Hellyer yesterday
morning.
VON BUEL0W MAKES REPLY
Attacks Clericals Who Deny His
Loyalty to Kaiser.
BERLIN. June . 16. Chancellor von
Buelow. during tne debate in the Reich
stag today on financial reform, attacked
the tactics employed by the clerical party
against him. They had even dared, he
said, to accuse him of disloyalty to the
Emperor and infidelity to the German
Austrian alliance and they had con
sidered it necessary to sever their social
relations with him.
"It never occurred to me," said the
Chancellor, "to exclude any one from
social relations because of differences of
political opinions."
Discussing the reports as to whether
he would retain the Chancellorship, he
said:
"I shall . remain as long &m the Em
peror believes my co-operation in the in
ternal and external policies of Govern
ment, is useful to the Empire."
BONILLA MAY LEAD REVOLT
Outbreak In Honduras Grows and
Former Leader Returns.
NEW ORLEANS. June 16. Dispatches
received by local business houses say that
La Ceiba and the northern coast prov
inces of Honduras are in open revolt and
have sent emissaries to New Orleans
to persuade Manuel Bonllla to return and
take possession of the government. Da-
villas has applied to the United States,
and. the United States gunboat Paducah
is patrolling Ceiba Harbor to prevent san
guinary outbreaks.
General Bonilla Is in New Orleans now,
but will sail Thursday. He stoutly de
nies, however, that there Is anything slg-
niflcant in his departure.
IT WILL KEEP THE CH00-CH00 MAN
MENIALS' STORIES
SEVERE ON LADY
Mrs. Gould Depicted as
Drunken Virago.
STAGGERS AND IS PROFANE
Tells Husband She Will Show
Him Who Is Boss.
i
v.
TRIES TO MOVE HALL CLOCK
Wrestles With It and Staggers to
Wall Drives Team Against
Closed Gate Rushes, Drunk,
to Rooms of Servants.
NEW YORK, June 16. Howard Gould
did not go on the stand today to testify
against his wife, Katherlne Clemmons
Gould, whose suit for separation he is
opposing. Instead there was a con
tinuation of servants' gossip, accounts
by menials of their former mistress'
eccentricities, humiliating details, as
sworn to on the stand, of Mrs. Gould's
alleged fondness for alcoholic bever
ages and her manner at such times
when the Influence of liquor was said
the have brought from her lips remarks
Ill-suited to a woman's tongue. What
Katherlne Clemmons Gould heard to
day was but-a reiteration, and in some
respects an amplification, of yesterdav's
testimony, the basis of which was that
at various times at Castle Gould she
had been intoxicated, had abused ' the
servants, given arbitrary and unreas
onable commands, and had used rather
severe language in altercations with
her husband.
Drunk, Swore at Servants.
An occasion when she would have
fallen from her carriage but for the
protecting hand of a coachman, her
attempt to drive through a closed gate.
a time when a footman saved her from
falling while intoxicated, '"Were anrong
tne things alleged.
A carpenter, Herbert Trotter, was the
last witness of the day. He said when
he was working in the servants' quar
ters.' Mrs. Gould rushed in -and swore
at the servants. Her voice was shaky
and Incoherent, her hair disheveled and
she was very profane. "She was de
cidedly drunk," said the witness.
"At another time she came into the
stables while I was working there and
swore at the grooms and was very
drunk. She tried to go upstairs to the
harness room, but could not navigate
the steps."
Trotter said he was ordered to go
to Blue Gap farm, the Gould place in
Virginia. On several occasions during
the first 10 days he was there, he tes
tided, he saw her intoxicated and
heard her swear a great deal at the
workmen.
"One night she came in. from driving
drunk," said the witness, "and began
(Concluded on Pag ft.)
BUSY.
POPE DISCUSSES
AMERICAN GAME
JOKES FARLEY ABOUT PLATING
BASEBALL IN ROME.
Archbishop Admits Pitching First
Ball and Exertion Caused
"Glass Arm."
ROME, June 16. Archbishon Farlev of
New York, was received In nrivate
audience by the Pope today. He thanked
tne fope for the interest taken in the
golden Jubilee of the American College.
In a joking tone the Pope said to the
archbishop:
"I have been told that yesterday you
went out to Castle Gandolfo and played
The archbishop replied:
"Tes. VOUt- hnlfTIAM T nltKj v
ball. It was the first game to be played
t v-MiiB lianaono and I wanted it to be
inaugurated by one of the oldest of the
He added that the
tlon had given him a glass arm,"
CARR SPURNS TACOMAIMS
Disapproves of Being Traded Off by
Aberdeen.
TACOMA. Wash.. June 16 rSnHi
It oevelops the trade the Tiger man
agement made with Aberdeen, whereby
uresino, the midget shortstop, was ex
changed for Shortstuo Carr. also in
cludes Charley Moore, the Black Cats'
second baseman. Moore will don a
Tiger uniform Friday. Bresino is still
noioing down shortstop for Tacoma,
because Carr has refused to report to
Tacoma, and unless he changes his
mind the trade may be declared off.
X will not play with any team in
the Northwestern League but Aber
deen," he declared. "I will either play
with the Black Cats or go back to
Washington, D. C., to take my final
examination to be admitted to the bar."
ONLY SEEKS COOLER ZONE
Katherlne Elkins Going to Europe
for Health, Not Love.
WASHINGTON, June 16. Senator El
kins laughs at the suggestion that his
daughter. Miss Katherlne. is going to Eu
rope to meet the Duke of Abruzzi. He
said today that the young lady had for
some time had a slight heart affection,
which is always materially augmented
by heat, and that her physician had di
rected that upon the approach of the hot
weather she should go to the cooler
zones of Europe. She will be accomanied
by her mother and both will leave when
ever the temperature here becomes too
high for them.
PROSPERITY HITS STEEL
Two Big Eastern Plants Order 10
Per Cent Wage Advance.
PITTSBURG, June 16. Eight thousand
employes of the Jones & Laughlin Steel
Company were today notified of a 10 per
cent advance in wages.
SHARON, Pa., June 16. Notices were
posted today at the plant of the Sharon
Steel Tubing Company that after July 1
every employe. Including the office force,
will receive an increase of 10 per cent
In pay. Twelve hundred men are af
fected. THREE DEAD IN TORNADO
Two Missouri Towns Wrecked by
Great Wind Storm.
JOPLIfT, Mo., June 17. Passengers on
a San Francisco passenger train arriv
ing here shortly after midnight re
ported the towns of Purdy and Monett
wrecked by a tornado. At least two
were killed.
MONETT, Mo.. June 18. A tornado
west of here tonight killed R. Mc
Cormack. a farmer, and Injured seven
children.
COUPLE WEDS IN OPEN AIR
Seattle Man and New Tork Girl Are
Married at Cornish, N. II.
CORNISH. N. H., June 16. -John Erlck
son, a prominent banker and Klondike
millionaire of Seattle, Wash., and Miss
Margaret Beaman, daughter of Mrs.
Hettie E. Beaman. of New York, were
married in the open air at "BIow-Me-Down,"
the Beaman Summer home, here
today. The bride Is a grand-daughter of
the late United States Senator William
M. Evarts, of New York,
HADLEY TURNSDOWN FAIR
Missouri Needs Money at Home for
Education and Its Poor.
KANSAS CITY, June 16. Governor
Hadley today vetoed the bill providing
for an expenditure of $20,000 for a
Missouri exhibit at the Seattle fair.
The Governor said the stated needed
this money more for educating its cit
izens and for the poor.
MUST NOT WED ASIATICS
Missouri Governor Signs Bill Against
Mixed Marriages.
JEFFERSON CITY. Mo.. June 16.
Governor Hadley today signed a bill pro
hibiting the marriage of Caucasians with
Chinese, Japanese and other Asiatic.
E TAX WILL
CAUSE HOT FIGHT
Taft Proposes Corpora
tions Be Taxed.
AMENDMENT TO CONSTITUTION
Would Wait for Income Tax,
Progressives Say No.
WANT IT IN TARIFF BILL
Caucus of Progressives Says Taft's
Message Is Designed to Chloro
form Their Plan Have
Aid of Democrats.
WASHINGTON. June 16. The fight for
an income tax will be continued. Five
progressive Republican Senators Borah.
Bristow, Cummins, La Follette and
Clapp, conferred tonight to determine
what their attitude is to be In relation
to the income tax amendment to the tar
iff bill in the face of the President's spe
cial message to Congress today favoring
the submission of the question to the
states for a constitutional amendment
and the enactment of a law taxing the
net earnings of corporations. They de
cided that the President's plan is not
inconsistent with their demands for the
adoption of an amendment to the tariff
bill taxing incomes. They assume that
the President's plan, indorsed by the
leading Republicans on the finance com
mittee. Is destined to "chloroform" the
Income tax amendment to the bill.
A brief statement prepared by Borah
and Bristow says:
"The friends of the income tax feel it
a duty to continue to put forth every ef
fort to secure the adoption of the meas
ure. They will therefore urge the adop
tion of the amendment. They also stand
ready to support a resolution providing
for an amendment to the Constitution of
the United States. While they believe
that the Supreme Court will sustain the
law, yet to provide against any possible
contingency that might arise from an
adverse decision, they gladly favor the
proposition to amend the Constitution.
"They do not feel satisfied with simply
a corporation tax. A tax upon the net
income of incorporations alone will very
imperfectly reach the desired result. It
Concluded on Page 4.)
INDEX OF TODAY'S NEWS
The Weather.
YESTERDAY'S Maximum temperature. 64
degrees; minimum.. 55 degrees.
TODAY'S Fair and warmer; northwesterly
winds.
foreign.
Pope discusses baseball with Archbishop
Farley. Page 1.
National.
Taft sends message recommending corpora
tion tax and constitutional amendment al
lowing: income tax. Page 1. Its pro
visions. Page 8.
Progressive Senators will fight for Income,
tax amendment to tariff bill, aided by
Democrats. Page 1.
Senate finally passes Philippine free tcade
provision of tariff bill. Page 5.
Bonaparte leaves mystery In Department of
Justice. Page 4.
Domestic.
Dayton prepares great 'reception for Wright
brothers. Page 3.
Report of Hughes committee on stock and
produce speculation. Page 1.
Mrs. Gould's servants testify that she waa
frequently drunk and profane. Page 1
Moore heaps scorn and sarcasm on graft
prosecution and its witnesses. Page 2
Dr. Wiley tells Charities Conference impure
food supplied to charitable institutions.
Page 3.
Illinois primary law declared Invalid.
Page 5-
C. W. Morse released on ball. Page 3.
Helnzes accused of mutilating United Cop
per Company's books. Page 4.
Evldence that Mrs. Sennett. of Los Angeles,
waa poisoned with strychnine. Page 4.
Foreign bankers yield to Americans on
Chinese loan. Page 8.
Sports.
Coast ' League scores: Portland 0. San
Francisco 5; Oakland 2, Los Angeles ;
Vernon 7. Sacramento 6. Page 7.
Auto racer shows pluck in accident. Page T.
Denver Country Club wins Tom Morris golf
trophy. Page 7.
Northwestern League scores: Seattle 6,
Portland Aberdeen 3, Tacoma 2; Van
couver 6 Spokane 4. Page 7.
Pacific Xorthweat.
Negro held for arson in Aberdeen has been
through many fires. Page ft.
SocialLst Haywood arrested for smoking
cigarette. Page 1.
Washington brewers stirred up over
rumored renewal of county local option
fight. Page ft.
Sons of Desire St. Dennis charge fourth
wife of making father drunk when he
drew will. Page 6.
Commercial and Marine.
Wheat farmers not ready to contract their
crops. Page 17.
Wheat prices slump at Chicago. Page 17.
Supporting measures prevent bad break In
stocks. Page 17.
Steamer Chas. R. Spencer withdrawn from
daily service between Portland and As
toria. Page 14S.
Portland and Vicinity.
Negro porter shoots two Portland railroad
men at Shaniko. Page 1. .
Miss Mary Adeie Case, here from New Tork,
neither affirms nor denies her engage
ment to young Claus Sprockets. Page 3.
Elderly phrenologist deserts bride of a week
because she had corns. Page 1.
Forger Ross sentenced to two years in peni
tentiary. Page 11.
Eclipse of sun visible here this afternoon if
weather is clear. Page 2.
School commencement exercises. Page 1J.
Oregon grand lodge of Masons elects offi
cers. Page lo.
Mrs. Emma B. Carroll says there are no
decent mothers In Portland. Page 10.
Orders Issued for O. N. ti. annual field
practice. Page 12.
Chamber of Commerce of Astoria sus As
toria & Columbia River Railroad for
terminal rates. Page 0.
Fourteen graduates of Columbia University
are presented diplomas by Axchbiaaon
ChxtaUe, Page 10. "
INCH